China has introduced some star-quality reforms to shoot its economy back to goal winning form, writes Richard Li
China’s development is being challenged by a complicated and severe international environment. As a whole, the domestic economy has maintained healthy growth in the past few months (although the recent figure of 6.2% in the second quarter is the weakest in 27 years, according to China’s National Bureau of Statistics and tradingeconomics.com). Still, the central government has maintained its composure, and by gradually rolling out reform measures to attract foreign investment and encourage technological innovation in the capital market, it has injected a sense of optimism.
However, as the economy comes under pressure, market players are being confronted with new challenges. The biggest of these is undoubtedly the trade war with the US, which is affecting foreign investment into China.
Milton Cheng, managing partner of Baker McKenzie’s Hong Kong office, says, “The protracted trade conflicts are also keeping our international commercial and trade practice very busy as companies rework their supply chains to keep themselves out of the line of fire.”
Still, the Chinese market remains hugely attractive for foreign investment. Eric Liu, a partner at Linklaters Zhao Sheng in Beijing, says that market has been undergoing an opening-up process, but the trend is intensifying. “For example, just some time ago, the government issued a new negative list for foreign investment in China, and many international investors are paying close attention to this trend of opening up,” he says.